Booking vs Reservation Fee – What’s the Difference?
Saturday, 8 November 2025
Buying property in Dubai’s off-plan market is an exciting journey, filled with new opportunities and flexible payment options. But before signing formal sales agreements, buyers typically come across two important financial steps: the booking fee and the reservation fee.
Though these terms are sometimes used interchangeably, they carry different roles and meanings in the property-buying process. Understanding the difference helps buyers make confident and secure decisions from day one.
Table of Contents
- What Is a Booking Fee?
- What Is a Reservation Fee?
- Purpose of a Reservation Fee
- Is It Refundable?
- Key Differences: Booking vs Reservation Fee
- What Happens After These Fees?
- Why These Fees Matter
- Frequently asked questions
What Is a Booking Fee?
A booking fee is the first amount paid to reserve a specific property unit. It shows serious interest and temporarily takes the property off the market.
Purpose of a Booking Fee
- Secures your preferred unit
- Initiates the sales process
- Confirms your intention to buy
What Happens After Paying?
- The developer issues a booking receipt
- You receive the initial documents (booking form)
- The unit is held for you for a limited period
Is It Refundable?
Typically non-refundable, unless the developer fails to proceed or meet agreed preliminary terms.
Tip: Only pay when you’re confident about your choice, as cancellation may result in losing the fee.
What Is a Reservation Fee?
A reservation fee works similarly but is usually tied more formally to the next stage of commitment.
It confirms your intent to proceed towards signing the Sales and Purchase Agreement (SPA), the legally binding contract.
Purpose of a Reservation Fee
- Reserves the property for a specific period
- Leads directly to signing the SPA
- Often counted as part of the total down payment
Is It Refundable?
Generally non-refundable, but terms vary by developer. Always check written terms.
Key Differences: Booking vs Reservation Fee
| Feature | Booking Fee | Reservation Fee |
|---|---|---|
| Purpose | Shows serious interest | Confirms purchase before SPA |
| Timing | First payment | Before/at SPA signing |
| Legal Weight | Commercial step | Higher commitment |
| Refundability | Mostly non-refundable | Mostly non-refundable |
| Effect | Takes unit off market temporarily | Locks in purchase terms |
What Happens After These Fees?
Once the fee is paid and forms are signed:
- Booking form issued
- Buyer submits personal details + passport copy
- Down payment instalment requested
- SPA issued and signed
- Property registered in the Oqood system for off-plan units
This secures your property legally and formally.
Why These Fees Matter
Both fees are essential steps to ensure fairness:
For Buyers
- Locks your chosen unit
- Protects against price increases
- Starts your investment process
For Developers
- Reduces speculative interest
- Ensures buyer commitment
- Helps manage inventory
Whether labeled as a booking fee or reservation fee, both payments play a crucial role in your off-plan purchase journey in Dubai. They secure your chosen unit and begin the legal steps toward ownership.
Before signing or paying, always:
- Review terms carefully
- Confirm refund rules
- Understand your commitment timeline
With due diligence and clarity, your off-plan investment journey can be smooth, secure, and rewarding.
Frequently Asked Questions (FAQs)
Is a booking fee the same as a reservation fee?
They serve a similar purpose, but a reservation fee usually comes closer to SPA signing and represents a deeper commitment.
Can I get my booking or reservation fee refunded?
Usually not, unless stated in writing. Always check the agreement first.
Does the fee count towards my property price?
Yes — it typically goes toward the down payment or total purchase value.
Do I need to sign documents with the fee?
Yes — a booking form or reservation agreement will be issued to record your interest and unit details.
What happens after the fee is paid?
The developer holds the unit, issues documents, and moves you toward signing the SPA and making the next instalment payment.
